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There have been many recent discussions on Singapore's social
compact. How much meritocracy is too much? How do we address inequality
arising from the free market? Some advocate more Government action;
others worry about economic competitiveness.

In the midst
of this debate, we must not lose sight of deeper questions of what we
are as a nation, and what we hope to be as a people.

Modern
market economies, by rewarding the most able and productive, have
created many opportunities in the era of globalisation. A local artisan
can sell his craft to customers half a world away. Workers across the
globe can create something more than the sum of individual efforts. New
roles and new jobs arise.

Yet for those whose jobs have
become commoditised, there is intense wage pressure downwards.
Assembly-line workers do not merely need to match their countrymen in
the factory next door; the competition now includes counterparts in
India, China and elsewhere. Hence the problem of widening income gaps in
open economies like Singapore.

Capitalism and free markets
also have intrinsic limitations. Market failures occur for various
reasons, such as information asymmetry, positions of advantage or price
externalities. For example, automobile prices do not automatically
factor in the environmental cost of greenhouse gases, nor the
geopolitical implications of petroleum dependency.

The
market provides information on supply, demand and prices. However, we
should not let market economics determine our social norms and values.
When all is reduced to price, we lose track of the priceless. When a
mentality of winner-takes-all takes root, it takes away something from
our society.

REDISTRIBUTION ISN'T ENOUGH

We need progressive taxation and redistribution in any modern
market economy, as part of a progressive fiscal system. But is it
enough?

While many nations have narrowed their income gaps,
none have completely abolished inequality and social differences. Even
in economies where income taxes are high and redistributive transfers
are large, it remains too easy for the savvy investor to structure his
wealth against taxation, or to park it overseas in any number of tax
shelters. Great Britain after World War II saw the founding of a welfare
state, yet class divides remain not far from the surface.

The captains of capitalism have differing reputations. Why is it that Mr
Warren Buffett is celebrated even by those less enamoured of the free
market, whereas some other businessmen are seen even by the 1 per cent
as parasites extracting yet more wealth to augment existing riches?

Inequality becomes particularly corrosive to society when people
no longer see a path upwards; when those on top do not give a helping
hand - or worse, having climbed to the next level, pull the ladder up
after themselves and pretend the ladder was never needed in the first
place.

The meritocratic system begins to fray when great
success breeds a sense of great entitlement, rather than the calling of
great responsibility to others.

This is not just a question
of personal values. When social cohesion is brittle, it weakens a
people's resilience. A country divided cannot easily navigate out of
danger. A nation's defence is incomplete unless each citizen feels he
has a stake in the future, that he is part of something greater, that he
is fighting for more than just another person's possessions.

Social mobility and a rebalancing of meritocracy, while crucial, are but part of the answer. Something more is needed.

LESS TAKING, MORE GIVING

How can we build a society that has less taking and more giving?
Legislation and progressive fiscal policies are necessary but not
sufficient. Something of our humanity is lost when all redistribution is
reduced to bureaucratic transaction, in the same way that an automated
birthday greeting lacks the personal touch of a handwritten message.

We must remake our social norms. Imagine a society where the
wealthy Singaporean leading a gilded life is seen by peers and people as
less than successful, unless he contributes back and makes a voluntary
difference above and beyond his tax obligations - be it in time, energy
or donations.

That society is within our reach today, for one need not be a Rockefeller or a Carnegie to touch others' lives.

Nearly a decade ago, I witnessed this while caring for a young man
who had lost his leg in a road accident. He was deeply discouraged and
in despair. Another amputee, who had lost a leg to cancer but gone on to
a successful career, came forward to provide encouragement. That human
touch made the difference: By giving a younger man hope in overcoming
present tragedy, the will to live was restored.

More
broadly in the healthcare sector, we see patients, relatives and
well-wishers coming together: Some donate money to assist the needy
sick, others give of their time to organise fundraisers and encourage
those newly diagnosed.

Employers who understand the illness
journey have gone the extra mile to hire fellow Singaporeans on their
own road to recovery.

Such ground-up efforts can complement the progressive redistribution that is the hallmark of a responsible government.

SMALL ACTS THAT SPEAK

So long as our legs have strength, we have it within ourselves to
stand up for pregnant women and elderly folk by offering an MRT seat.

Each pair of two good hands can build a cleaner Singapore, simply
by returning our own trays to help the cleaners at hawker centres and
food courts - no matter how few join the endeavour at first.

A small act may seem inconsequential, but it speaks kindness to the
people we reach out to. And when we hear of such good deeds, we too must
speak of them, to show our support for a better Singapore.

All it takes is for each of us to decide, together, that the Singapore
dream is not just about how far we can go, how fast we can achieve, or
how high we can soar. It is also about whether as citizens we have lived
for causes larger than our individual selves, and made a difference to
our fellow men and women.

By joining taxation and
redistribution with constructive social norms, we can be a great people,
building a happy, prosperous and progressively inclusive Greater
Society.

Tan Wu Meng, a Singaporean, is a medical doctor working in a public sector hospital.